Tired of your old iPhone? Apple will give you cash for that

New trade-in program ensures that you get a new phone—and that it's an iPhone.

Bloomberg is reporting that Apple has teamed up with BrightStar Corporation, a mobile-phone distributor, to begin an in-store trade-in program, according to an unnamed source. The program will help users with aging iPhone handsets transition to the more recent iPhone 5.

This isn't the first recycling program from Apple. Apple runs a Web-based recycling service in conjunction with PowerOn Services Inc., a company based in Roseville, CA. The company offers cash for used iPhones, iPads, and Macs. The program with BrightStar, however, will be available at Apple’s retail locations so that consumers will receive their money quickly and avoid having to deal with packaging and shipping products, as is standard with some other trade-in services. This tactic will also help ensure that the consumer sticks with Apple rather than taking the money and spending it with another company’s mobile platform. Each iPhone that is bought back will reportedly be resold in emerging markets.

BrightStar set up its trade-in shop over a year ago and will hit the 15 million mark later this year for devices that it has bought and resold. The company takes about 80 percent of used devices in the US and resells them to distributors in 50 countries. BrightStar also handles trade-ins for companies like AT&T and T-Mobile, as well as several other unnamed carriers and device makers.

By offering money for the aging smartphones, Apple and other companies can enable customers to upgrade to the latest hardware while also profiting from resales of the handsets. This is positive news for customers who might be holding on to old phones since most carriers only subsidize handsets with new contracts.

Both BrightStar and Apple have declined to comment to Bloomberg about the trade-in program and there's no word on when it will begin.

30 Reader Comments

That would be pretty nice. My wife did the recycling program when she upgraded her 4 to a 5, but it was a few weeks between when she bought the new phone, sent in the old phone, and then got the gift card. If I could just walk in, get a new phone, have a Specialist perform a data transfer, and pay a reduced amount, I'd be happy to trade it in right there. I'm guessing that a number of people would even spring for a more expensive phone with the savings, which would make Apple happy.

I like this; if you're grandfathered on some unlimited data plans, a carrier upgrade would reset you to a regular plan and this is much easier than trying to resell an old handset privately. Now if only this were universal and handset makers would accept other makers' hardware (Nokia I'm looking at that black 925)

EDIT: Jeez no offense intended, I was just expressing a desire for other companies to follow apple's lead here. It helps solve a long standing problem in the US phone market - handsets are prohibitively expensive without carrier (or now manufacturer) incentives.

As has been said, price is a huge concern. I sold my old 4S for more than the cost of a new 5, because people don't want to change their calling/data plan. As long as that scenario remains in play, used equipment in good condition will go a lot farther in the secondary market than any company sponsored buy-back programs.

Why would people do this when they can sell it on eBay for way more than whatever pittance the recyclers are paying?

Same reason why people trade in their old cars, rather than try selling it themselves when they buy a new one: convenience. But as others have said, it does depend on how much they're offering. If it's something like $50, no thanks. If I can walk in, hand them my phone, and essentially just walk out with a new one without putting any additional money down, that's perfectly fine by me. Even if I could make more money selling it on Craigslist or eBay, I may not be willing to deal with the hassle of putting it up for sale, sifting through all the fake offers, accepting one, and hoping that I don't get scammed in some other way.

Why would people do this when they can sell it on eBay for way more than whatever pittance the recyclers are paying?

Exactly. When I bought my iPhone 5 I was using a RAZR HD MAXX. I bought my iPhone at a Verizon store and they offered me only $175 for the RAZR. I sold it on eBay for over $500. People pay top dollar for recent phones that are out of contract. So you have to wait a week for the money - big deal. Apple wouldn't be doing this if they weren't sure they would make a profit.

Why would people do this when they can sell it on eBay for way more than whatever pittance the recyclers are paying?

Same reason why people trade in their old cars, rather than try selling it themselves when they buy a new one: convenience. But as others have said, it does depend on how much they're offering. If it's something like $50, no thanks. If I can walk in, hand them my phone, and essentially just walk out with a new one without putting any additional money down, that's perfectly fine by me. Even if I could make more money selling it on Craigslist or eBay, I may not be willing to deal with the hassle of putting it up for sale, sifting through all the fake offers, accepting one, and hoping that I don't get scammed in some other way.

Your argument doesn't account for the fact that many people who trade in cars don't own them yet - they're financed. Most folks don't finance phones.

Actually, I'm looking forward to trade mine, and get the latest model. I'm fully aware that I'll have to pitch in some money, but I think it's a good investment. Apple probably makes more money from the sales of apps and content than actual phone sales, I guess.

I traded in my 4 through the PowerOn program with Apple, and got $90 for it. I felt this was fair considering it had water damage, a scratch in the glass, and the earpiece speaker was dead.

If it was in perfect condition it would have been worth a lot more on ebay or craigslist vs any trade in program.... if you're considering this and you know that your phone is in great shape, just plan to sell it privately if you're willing to do so.

Why would people do this when they can sell it on eBay for way more than whatever pittance the recyclers are paying?

I haven't touched e-bay in about 7 years. I got burned too many times by people with great ratings, that cheated me then wielded their rating strength as a club to destroy my wife's nascent online business if we dared say something negative about them. I've been told it's better now, but why would I return to a business that's let people cheat me?

I won't buy unless the conditions are one of:

1. Directly from a manufacturer2. A store with a local retail brick-and-mortar presence so I know I have recourse if there's a problem3. Somebody I can look in the eye while doing business with

AT&T just started this a while ago, my parents got text messages offering $100 for their 16GB iPhone 4 phones. I was hoping to have them stretch to September or October so they could get a 5 for $99, but we'll see if they can wait that long.

Why would people do this when they can sell it on eBay for way more than whatever pittance the recyclers are paying?

Same reason why people trade in their old cars, rather than try selling it themselves when they buy a new one: convenience. But as others have said, it does depend on how much they're offering. If it's something like $50, no thanks. If I can walk in, hand them my phone, and essentially just walk out with a new one without putting any additional money down, that's perfectly fine by me. Even if I could make more money selling it on Craigslist or eBay, I may not be willing to deal with the hassle of putting it up for sale, sifting through all the fake offers, accepting one, and hoping that I don't get scammed in some other way.

Your argument doesn't account for the fact that many people who trade in cars don't own them yet - they're financed. Most folks don't finance phones.

I don't see how that's relevant. I've done both trade-in and private sale for both cars I've owned free and clear, and cars I still was financing. They all involved about the same amount of work. The only extra stuff I had to do with a car I sold myself that I was financing still was calling the bank for a payoff amount and then paying that off.

Also, yes, most people totally finance phones. You do realize that the $99 you pay with a two year contract IS a form of financing, right?

Why would people do this when they can sell it on eBay for way more than whatever pittance the recyclers are paying?

Same reason why people trade in their old cars, rather than try selling it themselves when they buy a new one: convenience. But as others have said, it does depend on how much they're offering. If it's something like $50, no thanks. If I can walk in, hand them my phone, and essentially just walk out with a new one without putting any additional money down, that's perfectly fine by me. Even if I could make more money selling it on Craigslist or eBay, I may not be willing to deal with the hassle of putting it up for sale, sifting through all the fake offers, accepting one, and hoping that I don't get scammed in some other way.

Your argument doesn't account for the fact that many people who trade in cars don't own them yet - they're financed. Most folks don't finance phones.

What do you think a phone contract is? It's essentially a hire-purchase finance agreement.

The rule is likely to be: • phone (good/great condition): sell yourself, to get best price to put toward new purchase.

• phone (bad/questionable condition): trade-in, as they recondition anyway, they're unlikely to offer a different trade-in price for condition.

• can't be bothered with the hassle of selling yourself: trade-in, for the quick convenience.

It's essentially the same with anything that has a reasonable secondhand value. This at least provides another option.

Just wonder if it's US only, or will UK/EU/etc. get this, as the article doesn't specify clearly?

Why would people do this when they can sell it on eBay for way more than whatever pittance the recyclers are paying?

(while this has nothing to do with apple) I tend to pay more for convenience as a matter of principle.

For example, the restaurants around my place are more expensive than those at a greater distance... yet I don't travel to go to them. The closest grocery store to me is independent (mom and pop); I use it because it saves me a huge amount of time even though I can get much better deals elsewhere. etc. etc. Time and effort saved means sooo much more to me than money saved.

If Apple is going to take the hassle of craigslist away from me, just to sell my old phone ... even though I won't get as much ... I'm probably going to use this option.

Why would people do this when they can sell it on eBay for way more than whatever pittance the recyclers are paying?

The answer to this is similar to why the vast majority of people do not do "the obvious" thing of saving hundreds of dollars by "building" their own desktop PC instead of paying more for a complete, integrated, and fully warranted boxed computer. Sometimes the raw amount of money is not the primary factor of value.

Why would people do this when they can sell it on eBay for way more than whatever pittance the recyclers are paying?

I haven't touched e-bay in about 7 years. I got burned too many times by people with great ratings, that cheated me then wielded their rating strength as a club to destroy my wife's nascent online business if we dared say something negative about them. I've been told it's better now, but why would I return to a business that's let people cheat me?

I won't buy unless the conditions are one of:

1. Directly from a manufacturer2. A store with a local retail brick-and-mortar presence so I know I have recourse if there's a problem3. Somebody I can look in the eye while doing business with

This program matches one of those criteria.

Why you get down votes for a comment like this simply blows my mind. I don't care for these up and down votes. Some truly deserve it but most don't.

Also, yes, most people totally finance phones. You do realize that the $99 you pay with a two year contract IS a form of financing, right?

Yes it is, although "most people" in global sense don't use that model. Very large phone subsidies are pretty much a US thing. Subsidized phones with contracts are available in some European countries, especially in the UK, but the initial price is still typically higher than in the US. Some countries do no allow subsidies at all: China is a good example (it also explains why the iPhone does not have a larger market share in China; most people there can't afford the real price).

The amount of money you get back will almost certainly be a complete joke. When I had some damage done to my iPod out of warranty they refused to fix it, but told me they have this "great recycling plan", which would give me 10% off full retail price buying a new one. I could already find places to buy iPods at 5-10% off retail, so this was basically throwing away my old equipment for nothing.

The amount of money you get back will almost certainly be a complete joke. When I had some damage done to my iPod out of warranty they refused to fix it, but told me they have this "great recycling plan", which would give me 10% off full retail price buying a new one. I could already find places to buy iPods at 5-10% off retail, so this was basically throwing away my old equipment for nothing.

Recycling isn't the same since the iPod would be broken down into it's components and then those components broken down to get at anything that might be recyclable rather than being polished up and resold. You usually need to PAY to have electronics recycled. My microwave cost $40 for example.

Most (if not all) carriers here (Canada) offer a similar trade-in program. Instant credit for any phone when buying any new phone. Not just limited to iPhones on the trade-in, or purchase. I would be surprised if most US carriers don't already do this too (Canadian carriers are easily some of the least progressive in the world). This is news, but not new.

Why would people do this when they can sell it on eBay for way more than whatever pittance the recyclers are paying?

Same reason why people trade in their old cars, rather than try selling it themselves when they buy a new one: convenience. But as others have said, it does depend on how much they're offering. If it's something like $50, no thanks. If I can walk in, hand them my phone, and essentially just walk out with a new one without putting any additional money down, that's perfectly fine by me. Even if I could make more money selling it on Craigslist or eBay, I may not be willing to deal with the hassle of putting it up for sale, sifting through all the fake offers, accepting one, and hoping that I don't get scammed in some other way.

Your argument doesn't account for the fact that many people who trade in cars don't own them yet - they're financed. Most folks don't finance phones.

Actually, most people in the US do in fact finance their phones, by way of a subsidized cost offset by a locked 2 year contract...but now we are just splitting hairs

Florence Ion / Florence was a former Reviews Editor at Ars, with a focus on Android, gadgets, and essential gear. She received a degree in journalism from San Francisco State University and lives in the Bay Area.